The contract for the low-rate initial production lot of 43 F-35s with Lockheed Martin, agreed to on Monday, came out to be $4.55 billion, program manager Lt. Gen. Christopher Bogdan reported at a press conference Thursday. He revised a previous estimate, which said the per-plane cost dropped 3.6 percent from Lot 7 to Lot 8; it actually dropped 3.4 percent, due to currency fluctuations regarding partner funds. Pratt & Whitney also agreed to a $1.05 billion deal for Lot 8 engine production, for 48 engines, with a price reduction from Lot 7 to Lot 8 of 4.5 percent, Bogdan said. Including Lot 7, the price has dropped nine percent. Both Lockheed Martin and Pratt & Whitney are getting “back on the curve” for desired cost reductions, Bogdan said, reiterating that if things stay on track, F-35 flyaway unit costs will be in the $80 million to $85 million range by 2019. Those costs might be lower still, since they don’t count savings that may accrue from doing multiyear buys, or a quasi-multiyear buy that adds in partner purchases before then, as well as “Blueprint for Affordability” savings initiatives that begin in Lot 9.
Pentagon Releases Cost of Living, BAH Rates for 2026
Dec. 30, 2025
The Pentagon will pay cost of living allowances to 127,000 service members in the continental U.S. in 2026, an increase of 66,000 members in 2025. Airmen and Guardians across the U.S. will also receive an average increase of 4.2 percent for their Basic Housing Allowance, compared to the 5.4 percent…
